Seoul: Nearly 7 out of 10 patent applications filed in South Korea for investment-related artificial intelligence (AI) came from non-listed companies and startups, a report showed Tuesday, suggesting venture firms are leading the AI transformation in the finance sector.

According to Yonhap News Agency, a report from the Korea Capital Market Institute revealed that 67 percent of patent applications for financial investment-related AI were filed by local Software as a Service, or SaaS, companies. The report highlights the significant involvement of non-listed firms in pioneering AI advancements within the financial sector.

Of these applications, 76 percent were designed to be marketed to other companies or businesses, while only 14 percent targeted individual customers. This trend underscores the focus on B2B solutions within the sector, as companies aim to enhance financial operations through AI innovations.

The report further detailed that many of the patent requests pertained to AI technologies intended for standardized tasks. These include consigned trading of financial products, monitoring of abnormal trading activity, and stock price analysis. Such technologies are instrumental in optimizing traditional financial processes through automation and advanced analytics.

However, the report noted that AI patent filings were minimal in areas dealing with non-disclosed information and those reliant on human networks, such as deal sourcing. Additionally, sectors involving high financial risks saw fewer AI patent applications, indicating a cautious approach toward integrating AI in high-stakes financial activities.

The report concluded by emphasizing the need for broader AI innovation across the financial investment industry. It called for active engagement from the government and regulatory authorities to ensure AI advancements are not limited to specific areas but are spread throughout the sector.